{"id":95001,"date":"2017-07-10T12:00:59","date_gmt":"2017-07-10T11:00:59","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=95001"},"modified":"2017-07-05T11:40:18","modified_gmt":"2017-07-05T10:40:18","slug":"worlds-debt-over-three-times-greater-than-economic-output","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2017\/07\/worlds-debt-over-three-times-greater-than-economic-output\/","title":{"rendered":"World\u2019s Debt Over Three Times Greater Than Economic Output"},"content":{"rendered":"

29 Jun 2017 – <\/em>Global debt levels have surged to a record $217 trillion in the first quarter of the year. This is 327 percent of the world’s annual economic output (GDP), reports the Institute of International Finance (IIF).<\/p>\n

The surging debt was driven by emerging economies, which have increased borrowing by $3 trillion to $56 trillion. This amounts to 218 percent of their combined economic output, five percentage points greater year on year.<\/p>\n

The biggest contributor was China with $2 trillion. In June, the International Monetary Fund urged Beijing to tackle its ballooning debt, describing it as unusually high for a developing economy. Some estimates say China\u2019s debt stands at 260 percent of its GDP.<\/p>\n

Advanced economies have cut debt levels by $2 trillion over the past year. However, the US is approaching $20 trillion, almost 10 percent of global debt.<\/p>\n

“Rising debt may create headwinds for long-term growth and eventually pose risks for financial stability,”<\/em> the report said.<\/p>\n

“In some cases, this sharp debt build-up has already started to become a drag on sovereign credit profiles, including in countries such as China and Canada,”<\/em> it added.<\/p>\n

Emerging hard currency-denominated debt grew by $200 billion in the past year – growing at its fastest pace since 2014. Seventy percent of the debt is in dollars, the report found.<\/p>\n

“Rollover risk is high,”<\/em> the IIF added.<\/p>\n

The US and the EU could increase interest rates in the near future, thus making it more expensive for borrowers to repay, the report noted.<\/p>\n

_______________________________________________<\/p>\n

More: IMF urges China to cut ballooning debt faster <\/a><\/em><\/p>\n

Go to Original \u2013 rt.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

29 Jun 2017 – Global debt levels have surged to a record $217 trillion in the first quarter of the year. This is 327 percent of the world’s annual economic output (GDP), reports the Institute of International Finance.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[],"class_list":["post-95001","post","type-post","status-publish","format-standard","hentry","category-capitalism"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/95001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=95001"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/95001\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=95001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=95001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=95001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}